Shares of manufacturing and transportation companies were flat after a survey from Federal Reserve districts showed some regions experienced softening demand. "A majority of districts reported that firms expressed positive near-term outlooks; however, optimism waned somewhat in a few districts," the Fed said Wednesday in its latest roundup of anecdotal information about regional economic conditions, known as the beige book. "As the U.S. growth cycle stands as one of the longest in history," analysts at brokerage Morgan Stanley argued, in a note to clients, "a large deterioration in macro data will be needed to move the cycle towards 'downturn.'" The expansion is likely to survive until there is a marked widening in credit spreads and further increases in interest rates. Similarly, Burt White, chief investment officer at brokerage LPL Financial, said an analysis of corporate earnings calls pointed to very low odds of a recession this year -- the world "recession" was hardly mentioned by executives on calls with investors.
-Rob Curran, firstname.lastname@example.org
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(END) Dow Jones Newswires
May 31, 2017 16:34 ET (20:34 GMT)